Fed Official Harker: If Economic Conditions Meet Expectations, One Rate Cut This Year Is Appropriate

Philadelphia Fed President Patrick Harker, who will be a voting member of the FOMC in 2026, stated that he would like to see several months of data showing inflation improvement before cutting rates. In other words, his base case is for one rate cut this year. However, Harker noted that he does not rule out changing his view after analyzing more forthcoming economic data, suggesting there could be two rate cuts this year or possibly none, depending on the data.